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3.
Why is the moment right? <ul><li>We’re having to rethink our economic fundamentals in the light of the economic and environmental crises. </li></ul><ul><li>We’ve been complacent about the transition to a service economy – but critical about our innovative capacity. </li></ul><ul><li>Its necessary to go back to basics in thinking about services - and about innovation. </li></ul>

4.
Why is the moment right? <ul><li>We’re having to rethink our economic fundamentals in the light of the economic and environmental crises. </li></ul><ul><li>We’ve been complacent about the transition to a service economy – but critical about our innovative capacity. </li></ul><ul><li>Its necessary to go back to basics in thinking about services - and about innovation. </li></ul>

6.
Service  and  Innovation <ul><li>All the terms are highly ambiguous: </li></ul><ul><li>Service as product ( the service), as production and delivery (the service process), as philosophy (service orientation), as encounter (service journey). DOING USEFUL THINGS </li></ul><ul><li>Innovation as output ( the innovation), as process (innovation management), as philosophy (innovation orientation). DOING BETTER. </li></ul><ul><li>Service innovation : new service development; service elements of innovation; innovation within service organisations; innovation through services. DOING THINGS BETTER , DOING BETTER THINGS </li></ul>

7.
Varieties Of Service <ul><li>What they are doing: transforming people, artefacts, symbols </li></ul><ul><li>Who are they doing it with: services among highest- and lowest-skilled sectors </li></ul><ul><li>Who they do it for: consumer services, public services, business services </li></ul><ul><li>How they are organised – in-house, outsourced, offshored; large and small organisations, network organisations… </li></ul><ul><li>Differences in innovation (process) </li></ul>

8.
We know that: <ul><li>Service sectors are the bulk of our economies. </li></ul><ul><li>The most rapid growth has come from knowledge-intensive business services. </li></ul><ul><li>These support the whole economy, and thus growth, competitiveness, quality of life – and will be vital for sustainability, too. </li></ul><ul><li>They do this through their roles in innovation, supplying knowledge to support efficiency and flexibility – and to help adaptation and creativity. </li></ul>

9.
(Side-Note on Service Trade) Average annual change in OECD service exports 1999–2004 Source: William Cave (2006 OECD WP), from OECD TIS 2006 Total service exports 2004: $2234bn – Half of which is Travel & Transport ; Focus of trade : 1/3 trade intra-Europe, ½ intra- Europe and N America Distance is more important for services trade than for goods trade About 20% of all trade is services – fairly static share– well below economic scale of services

10.
We know that: <ul><li>Service sectors innovate in different ways - </li></ul><ul><li>This varies across sectors: high-tech KIBS are much like other high-tech firms (R&D and technology acquisition). </li></ul><ul><li>Otherwise innovation management (esp. R&D management structures) is rare outside of the biggest service firms. </li></ul><ul><li>Professional KIBS (and creative services) are also very innovative, but based more on professional networks and in-practice ad-hoc innovation. </li></ul><ul><li>Public services have distinctive patterns. </li></ul><ul><li>Some other services are fairly low in terms of innovation, other than that related to new equipment and software – though innovation* is understated in standard statistics – and poor links to wider innovation systems. </li></ul><ul><li>Organisational change is relatively more important (though technological innovators also tend to be organisational innovators). </li></ul><ul><li>Skill needs are challenging. </li></ul><ul><li>* and R&D </li></ul>

11.
We also know that: <ul><li>Service elements are important for ALL sectors: </li></ul><ul><ul><li>Production services </li></ul></ul><ul><ul><li>Product services </li></ul></ul><ul><ul><li>Servicisation </li></ul></ul><ul><ul><li>Customer service orientation </li></ul></ul><ul><li>Innovation in these elements is poorly measured and understood - with a few exceptions (Information Systems, ecommerce, logistics…) </li></ul><ul><li>Innovation management at firm level often fails to deal with these elements. </li></ul><ul><li>Skill needs are, again, challenging. General need to combine managerial, domain, technology and service capabilities. </li></ul>

13.
Advancing the study of service innovation Service/Innovation Policymakers Service Providers Generic Knowledge KIBS communities Services and Innovation Research Communities Technology and training providers Service Providers Specific innovation experiences, including action research

14.
The Time is Right… <ul><li>…and the needs are apparent. </li></ul><ul><li>Knowledge generation and action is required at many levels. </li></ul><ul><ul><li>Networking of research communities </li></ul></ul><ul><ul><li>Cooperation within and across service sectors and service practitioners more generally </li></ul></ul><ul><ul><li>Initiatives from policy and other stakeholders at city and city-region levels. </li></ul></ul><ul><li>Link to Grand Challenges and emerging social practice. </li></ul>